Best Personal Loan Rates This Week, July 22, 2025: Rates Give Mixed Signals

Personal loan rates took a split path this week. The average APR for 3-year loans dipped to 13.24%, while 5-year rates inched higher to 19.46%.

Although the Fed has kept rates steady, lenders continue to adjust their offers as economic uncertainty lingers. If you're looking to borrow, now may be a good time to lock in a shorter-term loan at a lower rate.

Below, we break down the best personal loan rates available this week.

Weekly rate trends

This week brought a mixed bag for personal loan rates. The average APR for 3-year loans slipped slightly again, offering a bit more relief for short-term borrowers. On the other hand, 5-year rates edged higher.

Those with strong credit scores are still landing some of the lowest rates -- often under 9% -- particularly on shorter terms. Although the Fed has kept rates steady so far, many are still hoping for potential cuts later in the year.

Average personal loan interest rates

Here's a quick look at the average personal loan rates this week.

How to compare personal loan rates

Scoring a good personal loan starts with knowing what lenders look for -- and where you can save.

• Know your credit score. This is one of the first things lenders check. If your score is above 700, you'll likely qualify for better rates. But even with a lower score, approval is still possible -- you may just see higher APRs or more conditions.
• Look at the full APR, not just the interest rate. APR includes both the interest and any fees, giving you a clearer picture of the loan's total cost. Sometimes a higher rate with no fees ends up being the cheaper option.
• Ask about rate discounts. Some lenders offer small reductions if you set up autopay or already have an account with them. Over time, those small perks can lead to real savings.
• Prequalify before applying. Many lenders let you check your estimated rate with just a soft credit pull -- so there's no impact on your credit score. It's an easy way to compare offers and find the best fit without committing.

When a personal loan can be a smart move

Used the right way, personal loans can give you flexibility and control over big expenses. Here are a few smart ways people use them:

• Consolidating debt: If you're juggling high-interest credit cards or multiple balances, combining them into one fixed-rate loan can simplify payments and lower your overall interest.
• Covering emergencies: Life happens. Whether it's a medical bill or urgent home repair, personal loans can provide quick access to cash -- sometimes within 24 hours.
• Funding big purchases: From home projects and weddings to cross-country moves, personal loans let you break large expenses into manageable monthly payments with a clear end date.

Our top pick this week: Upstart

Upstart is our top pick this week for its fast funding, wide loan range, and flexibility to pay off your loan early with no prepayment penalties. While it does charge an origination fee, qualified applicants can score lower rates than many traditional lenders offer -- making it a standout option right now.

Check your rate with Upstart -- there's no impact to your credit score, and you could get your funds in as little as one business day.

Bottom line

With 3-year loan rates dipping again this week and 5-year rates edging higher, borrowers with solid credit may want to act while shorter terms are more favorable. A personal loan could help you tackle big expenses or simplify debt -- on your own terms.

Explore this week's best personal loan offers to see what fits your goals.